## **HAZARA COMMUNITY ASSOCIATION**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023**
**Registered Charity No. 1187340**
1
**HAZARA COMMUNITY ASSOCIATION**
## **INDEX**
## **PAGE NUMBER**
## **CONTENTS**
|**GE NUMBER**|**CONTENTS**|
|---|---|
|3-5|Trustees Annual Report|
|6|Independent Examiners Report|
|7|Statement of Financial Activities|
|8|Balance Sheet|
|9|Statement of Cash Flows|
|10-15|Notes to the Accounts|
2
**HAZARA COMMUNITY ASSOCIATION**
## **Report of the trustees for the year ended 30th September 2023**
The trustees present their annual report and financial statements of the charity for the year ended 30th September 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland published (FRS 102) (effective 1 January 2019).
**Reference and administrative information** Charity Name: Hazara Community Association. Charity Number: 1187340
**Trustees (up to date of signing)** Nazir Moradi (Chair of Trustees) Appointed 05/03/2023 Mahdi Rezai Appointed 05/03/2023 Rohullah Nazari Appointed 05/03/2023 Abdurrahin Sharifi Resigned 05/03/2023 Hassan Rahmani Resigned 05/03/2023 Ramazan Ahmadi Resigned 05/03/2023 Mohammad Nabi Salehi Resigned 05/03/2023
**Principal Office** 33 Clarendon Street Manchester M15 5ED
**Independent Examiners**
Ark Accountants and Auditors Ltd. 334 Slade Lane Manchester, Greater Manchester M19 2BL
**Bankers** Lloyds Bank Plc I Legg St Chelmsford CM1 1JS
3
## **HAZARA COMMUNITY ASSOCIATION**
## **Objectives and Activities**
The objects of the CIO are:
1. To advance the education and training of those granted refugee status and their dependants so as to advance them in life and assist them to adapt within a new community.
2. To advance the education of the public in general.
3. To provide facilities for recreation and leisure time occupation in the interest of social welfare and with the object of improving the conditions of life of those persons who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances.
In furtherance of these objectives the trustees will aim to establish or secure the establishment of a community centre and to maintain and manage such a centre for activities promoted by the CIO.
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's aims and objectives, in planning future activities, and setting the policies for the year.
## **A review of our achievements and performance: How our activities delivered public benefit**
We have closed the other charity (reg number: 1142522) and all the activities taking place under the CIO. All the building works have been completed and all the building regulation requirements have been made and the completion certificate has been given to us by the building inspectors. The building is fully insured. We are still in the process of completing the change of use application, and after the completion of change of use educational classes will commence.
The main achievements during the year were raising money for property repairs for our community so all our celebration, classes, and cultural festivals can be held at our community centre. We also organised Eid festival and volleyball sessions.
Searched for availability of fund for community to repair the purchased building.
## **Financial Review**
The trustees are satisfied with the accounts. During the year trust has received income from donation and legacies is £9,336 (2022: £27,570) and from charitable activities is £10,453 (2022: £9,524).
## **Investment powers and policy**
The trustees, having regard to the liquidity requirements of operating the charity, have kept available funds in a current account.
## **Reserves policy and going concern**
The balance held in unrestricted reserves at 30th September 2023 was £226,777 (2022: £223,328) of which £5,157 (2022: £10,622.) are free reserves, after allowing for funds tied up in tangible fixed assets.
## **Risk management**
The trustees have conducted a review of the major risks to which the charity is exposed, and systems have been established to mitigate those risks.
## **Plans for Future Periods**
We plan to complete the change of use permission with the council and start educational classes for children and adults after that.
## **Structure, governance and management**
The Charity is a registered charitable incorporated organisation and is constituted under a trust deed dated 14th January 2020.
4
**HAZARA COMMUNITY ASSOCIATION**
## **Appointment of trustees**
New trustees are appointed by existing trustees and serve for three years after which they may put themselves forward for re-appointment. The Trust Deed provides for a minimum of three trustees, to a maximum of twelve trustees, with no more than three trustees due for re-appointment in any one year.
At the quarterly trustee meetings, the trustees agree the broad strategy and areas of activity for the Charity, including investment, reserves and risk management policies and performance.
## **Trustee induction and training**
The CIO trains and inducts trustees via a system of mentoring and internal training.
## **Trustees’ responsibilities in relation to the financial statements**
The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:
- Select suitable accounting principles and then apply them consistently;
- Observe the methods and principles in the applicable Charities SORP;
- Make judgments and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
- Prepare the financial statements on a going concern basis unless it is appropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provision of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees on 29/05/2024 and signed on their behalf by
________________________
Nazir Moradi
Chair
5
## **INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF**
## **HAZARA COMMUNITY ASSOCIATION**
## **REGISTERED CHARITY NO. 1187340**
I report on the accounts of the charity, for the Year ended 30th September 2023 which are set out on pages 7 to 15.
## **Respective Responsibilities of Trustees and Examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011(the 2011 Act) and that an independent examination is needed. The charity is preparing accrued accounts, and I am qualified to undertake the examination.
It is my responsibility to:
- Examine the accounts under section 145 of the 2011 Act;
- follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- To state whether particular matters have come to my attention.
## **Basis of Independent Examiners Report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view”, and the report is limited to those matters set out below.
## **Independent Examiner's Statement**
In connection with my examination no matter has come to my attention:
1. which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records, have in accordance with section 130 of the 2011 Act; and
- • to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act, have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed:______________ Muhammad Kashif
Date: 29/05/2024
Ark Accountants and Auditors Ltd. 334, Slade Lane Manchester, Greater Manchester M19 2BL
6
## **HAZARA COMMUNITY ASSOCIATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH SEPTEMBER 2023**
(Including income and expenditure account)
|**Note**
**Income from:**
Donations and legacies
3
Charitable Activities
4
**Total**
**Expenditure on:**
Raising Funds
5
Charitable Activities
5
**Total**
**Net Income/(expenditure)**
Transfers between funds
10
**Net movement in funds**
Reconciliation of funds
10
Totals funs brought forward
Transferred from Hazara Charity
(1142522)
**Total funds carried forward**
10|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Year ended**
**30 Sep 2023**
**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Year ended**
**30 Sep 2022**
**£**
**£**
**£**
**£**
**£**
**£**
-
9,336
9,336
-
27,570
27,570
10,453
-
10,453
9,524
-
9,524|
|---|---|
||**10,453**
**9,336**
**19,789**
**9,524**
**27,570**
**37,094**|
||-
-
-
-
-
-
7,004
28,366
35,370
2,185
13,254
15,439|
||**7,004**
**28,366**
**35,370**
**2,185**
**13,254**
**15,439**|
||3,449
(19,030)
(15,581)
7,339
14,316
21,655
-
-
-
-
-
-|
||3,449
(19,030)
(15,581)
7,339
14,316
21,655
223,328
72,599
182,010
160,355
-
160,355
0
0
0
55,634
58,283
113,917|
||**226,777**
**53,569**
**280,346**
**223,328**
**72,599**
**295,927**|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
The notes on pages 10 to 15 form part of these accounts
7
## **HAZARA COMMUNITY ASSOCIATION**
## **BALANCE SHEET AS AT 30TH SEPTEMBER 2023**
|**Notes**
**Fixed assets:**
Tangible assets
8
Total fixed assets
**Current assets:**
Cash at Bank & in Hand
Prepaid expenses
Total current assets
**Liabilities:**
Creditors: Amounts falling due within one year
9
Net current assets or liabilities
Total assets less current liabilities
**Total net assets or liabilities**
**The funds of the charity:**
Restricted income funds
10
Unrestricted income funds
10
**Total Charity funds**|**2023**
**2022**
**£**
**£**
275,189
285,305|
|---|---|
||275,189
285,305|
||4,764
11,672
1,443
-|
||6,207
11,672|
||1,050
1,050|
||5,157
10,622|
||280,346
295,927|
||**280,346**
**295,927**|
||53,569
72,599
226,777
223,328|
||**280,346**
**295,927**|
Approved on behalf of the Trustees Management Committee
Nazir Moradi (Chair) Date : 29/05/2024
The notes on pages 10 to 15 form part of these accounts
8
## **HAZARA COMMUNITY ASSOCIATION**
## **STATEMENT OF CASH FLOWS FOR TH YEAR ENDED 30TH SEPTEMBER 2023**
Reconciliation of net movement in funds to net cash flow from the operating activities
|Net movement in funds
Add back depreciation
Increase in current assets
Increase/(decrease) in creditors
**Net cash used in operating activities**
**Cash flows from investing activities:**
Purchase of fixed assets
**Net cash provided by investing activities**
Increase/(decrease) in cash and cash equivalents during the year
Cash and cash equivalents brought forward
Transferred from Hazara Charity (1142522)
**Cash and cash equivalents carried forward**|**Year ended**
**30 Sep 2023**
**Year ended**
**30 Sep 2022**
**£**
**£**
(15,581)
21,655
10,116
10,458
(1,443)
-
-
1,050|
|---|---|
||**(6,908)**
**33,163**|
||-
(22,598)|
||**-**
**(22,598)**|
||(6,908)
10,565
11,672
-
-
1,107|
||**4,764**
**11,672**|
9
**HAZARA COMMUNITY ASSOCIATION**
## **NOTES TO THE ACCOUNTS**
**1. Accounting Policies**
- (a) **Basis of preparation and assessment of going concern**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice.
Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 1[st] January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102.
- (b) **Funds structure**
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed. There is one restricted fund at the year end.
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.
Further details of each fund are disclosed in note 10.
- (c) **Income recognition**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity, and it is probable that those conditions will be fulfilled in the reporting period.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
- (d) **Expenditure Recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accrual’s basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (f) below.
- (e) **Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
- (f) **Allocation of support and governance costs**
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to independent examination ad legal fees together with an apportionment of overhead and support costs.
Governance costs and support costs relating to charitable activities have been apportioned based on type of expense. The allocation of support and governance costs is analysed in note 8.
10
**HAZARA COMMUNITY ASSOCIATION**
## (g) **Costs of raising funds**
The costs of raising funds consists of events.
## (h) **Charitable Activities**
Costs of charitable activities include governance costs and an apportionment of support costs as shown in note 5.
## (i) **Tangible fixed assets and depreciation**
All assets costing more than £500 are capitalised and valued at historical cost. Depreciation is charged on the following basis:
Building 2% Straight Line Basis Fixtures & Fittings 20% Straight Line Basis Building Improvements 5% Straight Line Basis
## (j) **Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their varying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## (k) **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
- (l) **Creditors and Provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of the funds to a third party and the amount due to settle the obligation can be measured of estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
**2. Related party transactions and trustees' expenses and remuneration**
The trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind. Expenses paid to the trustees in the period totalled £NIL (2022: £NIL.).
**3. Donations and Legacies**
|Donations
**Total**|**Unrestricted**
**Year Ended 30**
**September**
**2023**
**£**
**Restricted**
**Year Ended 30**
**September**
**2023**
**£**
**Total Funds**
**Year Ended 30**
**September**
**2023**
**£**
**Total Funds**
**Year Ended 30**
**September**
**2022**
**£**
**-**
9,336
9,336
27,570|
|---|---|
||**-**
**9,336**
**9,336**
**27,570**|
11
## **HAZARA COMMUNITY ASSOCIATION**
## **4. Income from Charitable Activities**
|Muharram Fundraising
Membership
**Total**|**Unrestricted**
**Year Ended 30**
**September**
**2023**
**£**
**Restricted**
**Year Ended 30**
**September**
**2023**
**£**
**Total Funds**
**Year Ended 30**
**September**
**2023**
**£**
**Total Funds**
**Year Ended 30**
**September**
**2022**
**£**
**-**
-
-
5,910
10,453
-
10,453
3,614|
|---|---|
||**10,453**
**-**
**10,453**
**9,524**|
**5. Expenditure**
|**Expenditure on raising funds:**
Event Costs
**Expenditure on charitable**
**activities:**
Repairs and Maintenance
Equipment
Cleaning
Governance
Insurance
Support Costs
Electric and CCTV
Sundry
Utility Expenses
Depreciation
**Total**|**Charitable**
**Activities**
**£**
**Year Ended 30**
**September 2023**
**£**
**Year Ended 30**
**September 2022**
**£**
-
-
-
18,250
18,250
2,796
1,665
1,665
401
56
56
86
1,050
1,050
1,050
495
495
-
990
990
505
2,000
2,000
-
235
235
143
513
513
-
10,116
10,116
10,458|**Charitable**
**Activities**
**£**
**Year Ended 30**
**September 2023**
**£**
**Year Ended 30**
**September 2022**
**£**
-
-
-
18,250
18,250
2,796
1,665
1,665
401
56
56
86
1,050
1,050
1,050
495
495
-
990
990
505
2,000
2,000
-
235
235
143
513
513
-
10,116
10,116
10,458|
|---|---|---|
||**35,370**
**35,370**
**15,439**||
||Unrestricted Funds
7,003
2,185
Restricted Funds
28,367
13,254
**Total Funds**
**35,370**
**15,439**||
|||**35,370**
**15,439**|
12
## **HAZARA COMMUNITY ASSOCIATION**
**6. Allocation of governance and support costs**
The breakdown of support costs and how these were allocated between governance and other support costs is shown below:
|**Basis for**
**apportionment**
Insurance
Type of Expenses
Accountancy
Fees
Type of Expenses
**Total**|**General**
**Support**
**Governance**
**2023 Total**
**2022 Total**
495
-
495
505
-
1,050
1,050
1,050|
|---|---|
||**495**
**1,050**
**1,545**
**1,555**|
**7. Independent Examiner Fees**
||**Year Ended 30**|**Year Ended 30**|
|---|---|---|
||**September 2023**|**September 2022**|
|Independent Examination Fees|1,050|1,050|
|**Total**|**1,050**|**1,050**|
**8. Tangible Fixed Assets**
|**Cost**
At 1 October 2022
Transferred in from Hazara
Charity (1187340)
Additions
At 30 September 2023
**Depreciation**
At 1 October 2022
Charged in the year
At 30 September 2023
**Net Book Value**
At 30 September 2022
At 30 September 2023|**Building**
**Building**
**Improvement**
**Fixtures &**
**Fittings**
**Total**
**£**
**£**
**£**
**£**
160,891
134,558
850
296,299
-
-
-
-
-
-
-
-|
|---|---|
||**160,891**
**134,558**
**850**
**296,299**|
||9,737
1,087
170
10,994
8,859
1,087
170
10,116|
||**18,596**
**2,174**
**340**
**21,110**|
||151,154
133,471
680
285,305|
||**142,295**
**132,384**
**510**
**275,189**|
**9. Creditors: amount falling due within one year**
|Other Creditors and accruals
**Total**|**2023**
**£**
1,050
**1,050**|**2022**
**£**
1,050|
|---|---|---|
|||**1,050**|
13
**HAZARA COMMUNITY ASSOCIATION**
## **10. Analysis of Charitable Funds**
**Analysis of movement in unrestricted funds**
||**Balance at**|**Balance at**|**Incoming**|**Resources**|**Transferred**|**Balance at 30**|
|---|---|---|---|---|---|---|
||**1**|**October**|**Resources**|**Expended**|**in from**|**September**|
|||**2022**|||**Charity**|**2023**|
|||**£**|**£**|**£**||**£**|
||||||**£**||
|General Fund||223,328|10,453|(7,004)|-|226,777|
|||**223,328**|**10,453**|**(7,004)**|**-**|**226,777**|
|**nalysis of movement**|**in restricted**||**funds**||||
||**Balance at**||**Incoming**|**Resources**|**Transferred**|**Balance at 30**|
||**1 October**||**Resources**|**Expended**|**in from**|**September**|
|||**2022**|||**Charity**|**2023**|
|||**£**|**£**|**£**|**£**|**£**|
|Restricted Donations||72,599|9,336|(28,366)|-|53,569|
|||**72,599**|**9,336**|**(28,366)**|**-**|**53,569**|
|**Total Funds**||**295,927**|**19,789**|**(35,370)**|**-**|**280,346**|
**Analysis of movement in restricted funds**
**Prior Year**
**Analysis of movement in unrestricted fund**
|General Fund|**Balance at**
**1 October**
**2021**
**£**
**Incoming**
**Resources**
**£**
**Resources**
**Expended**
**£**
**Transferred**
**in from**
**Charity**
**£**
**Balance at 30**
**September**
**2022**
**£**
160,355
9,524
(2,185)
55,634
223,328
**160,355**
**9,524**
**(2,185)**
**55,634**
**223,328**|
|---|---|
**Analysis of movement in restricted funds**
|Restricted
Donations
**Total Funds**|**Balance at**
**1 October**
**2021**
**£**
**Incoming**
**Resources**
**£**
**Resources**
**Expended**
**£**
**Transferred**
**in from**
**Charity**
**£**
**Balance at 30**
**September**
**2022**
**£**
-
27,570
(13,254)
58,283
72,599|
|---|---|
||**-**
**27,570**
**(13,254)**
**58,283**
**72,599**|
||**160,355**
**37,094**
**(15,439)**
**113,917**
**295,927**|
**Name of restricted fund:** Restricted Donations
**Description, nature and purpose of the fund** Towards building costs
14
**HAZARA COMMUNITY ASSOCIATION**
## **11. Analysis of Net Assets between funds**
|Tangible Fixed Assets
Cash at Bank and in hand
Prepaid Expense
Other Net Current Assets/(Liabilities)
**Total**|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**£**
222,000
53,569
275,189
4,764
-
4,764
1,443
-
1,443
(1,050)
-
(1,050)|
|---|---|
||**226,777**
**53,569**
**280,346**|
## **Prior Year**
|Tangible Fixed Assets
Cash at Bank and in hand
Other Net Current Assets/(Liabilities)
**Total**|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**£**
212,706
72,599
285,305
11,672
-
11,672
(1,050)
-
(1,050)|
|---|---|
||**223,328**
**72,599**
**295,927**|
## **12. Financial Instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognized on a transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at an amortized cost using the effective interest method.
15